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Supreme Court of India

THE OFFICER IN CHARGE, SUB-REGIONAL PROVIDENT FUND OFFICE & ANR.versusM/S GODAVARI GARMENTS LIMITED

Citation
2019 INSC 805
Decided
24 July 2019
Disposal
Appeal(s) allowed

Holding

Women workers engaged in home‑based garment stitching for a company, receiving raw materials and piece‑rate wages, are covered by the definition of “employee” under Section 2(f) of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.

Summary

The Officer in Charge of the Sub‑Regional Provident Fund Office issued a show‑cause notice to M/s Godavari Garments Ltd, a government‑owned garment manufacturer, demanding payment of Employees’ Provident Fund (EPF) contributions for women workers who stitched garments at their homes on a piece‑rate basis. The Bombay High Court held that these women were not employees and set aside the PF assessment. On appeal, the Supreme Court examined whether such home‑based workers fall within the definition of “employee” under Section 2(f) of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. Relying on the inclusive wording of the definition, the right of the employer to reject defective work, the provision of raw materials and direct payment of wages, the Court held that the workers are indeed employees. The Court further emphasized that the EPF Act is a beneficial social‑welfare legislation and must be interpreted in favour of workers. Consequently, the High Court’s order was set aside, the original PF assessment restored, and the company was directed to deposit the dues.

Issues considered

  • Whether women workers who stitch garments at home for a garment company are covered by the definition of “employee” under Section 2(f) of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.
  • Whether the EPF Act should be interpreted liberally as a beneficial social‑welfare legislation for the protection of workmen.

Legislation cited

Subjects

Employees' Provident Fund Actdefinition of employeehome‑based workerspiece‑rate wagessocial welfare legislationemployer‑employee relationshipprovident fund contributions

Judgment

                        [2019] 9 S.C.R. 1101                             1101


  THE OFFICER IN CHARGE, SUB-REGIONAL PROVIDENT                          A
                FUND OFFICE & ANR.
                                  v.
             M/S GODAVARI GARMENTS LIMITED
                   (Civil Appeal No. 5821 of 2019)                       B
                           JULY 24, 2019
[ABHAY MANOHAR SAPRE AND INDU MALHOTRA, JJ.]
      Employees’ Provident Fund and Miscellaneous Provisions
Act, 1952:
                                                                         C
      ss. 7-A, 2(f) – Employee – Definition of – Company engaged
in producing garments, employed women workers – Workers
provided raw materials-fabric, thread, buttons, to stitch the
garments at their homes as per the specifications given by the
company and the workers provided them to the company –
                                                                         D
Workers, if covered by definition of employee u/s. 2(f) – Held: Defi-
nition of “employee” u/s. 2(f) includes any person engaged either
directly or indirectly in connection with the work of an
establishment, and are paid wages – Women workers were directly
engaged for wages in connection with the work of the company –
They were paid wages directly by the company on a per-piece basis        E
for every garment stitched – Merely because the women workers
were permitted to do the work off site, would not take away their
status as employees of the company – Further, the Company had
the absolute right to reject the finished product, in case of any
defects – Thus, the women workers are covered by the definition of
                                                                         F
“employee” u/s. 2(f) – Order passed by the High Court that
workers are not the employees of the company, set aside – Com-
pany to deposit the amount towards Provident Fund dues of the
workers within the stipulated period.
       Interpretation of the EPF Act – Held: Employees’ Provident
Fund and Miscellaneous Provisions Act is a beneficial social welfare     G
legislation, enacted by the Legislature for the benefit of the workmen
– Thus, the provisions have to be interpreted in a manner, beneficial
to the workmen.

                                                                         H
                               1101
1102           SUPREME COURT REPORTS                     [2019] 9 S.C.R.


 A          Allowing the appeal, the Court
              HELD: 1.1 The Employees’ Provident Fund and
       Miscellaneous Provisions Act, 1952 is a beneficial social welfare
       legislation which was enacted by the Legislature for the benefit
       of the workmen. Hence, the provisions under the EPF Act have
 B     to be interpreted in a manner which is beneficial to the
       workmen. [Para 6.8] [1112-C-D]
            Regional Provident Fund Commissioner v. The Hooghly
            Mills Company Ltd. and Ors.2012 (1) SCALE
            422:[2012] 1 SCR 363; The Daily Partap v. The
 C          Regional Provident Fund Commissioner, Punjab,
            Haryana, Himachal Pradesh and Union Territory,
            Chandigarh (1998) 8 SCC 90 : [1998] 2 Suppl. SCR
            482 - referred to.
            1.2 The definition of “employee” under Section 2(f) of the
 D     EPF Act is an inclusive definition, and is widely worded to
       include any person engaged either directly or indirectly in
       connection with the work of an establishment, and are paid wages.
       [Para 6.1, 6.9] [1107-D-E; 1112-E-F]
             1.3 In the instant case, the women workers employed by
 E     the respondent company were provided all the raw materials,
       such as the fabric, thread, buttons, etc. from the respondent-
       employer. With this material, the women workers were required
       to stitch the garments as per the specifications given by the
       respondent company. The women workers could stitch the
       garments at their homes, and provide them to the respondent
 F     company. The respondent company had the absolute right to
       reject the finished product i.e. the garments, in case of any
       defects. The mere fact that the women workers stitched the
       garments at home, would make no difference. It is the admitted
       position that the women workers were paid wages directly by the
 G     respondent company on a per-piece basis for every garment
       stitched. Thus, the women workers employed by the
       Respondent Company are covered by the definition of “employee”
       under Section 2(f) of the EPF Act. [Para 6.2, 6.3, 6.7] [1107-E-H;
       1108-A; 1112-B]

 H
    OFFICER IN CHARGE, SUB-REGIONAL PROVIDENT FUND                1103
            OFFICE v. M/S GODAVARI GARMENTS LTD.

     M/s P.M. Patel & Sons and Ors. v. Union of India and         A
     Ors. (1986) 1 SCC 32 : [1985] 3 Suppl. SCR 55 ; Sil-
     ver Jubilee Tailoring House and Ors. v. Chief Inspec-
     tor of Shops and Establishments and Ors. (1974) 3 SCC
     498 : [1974] 1 SCR 747; Shining Tailors v. Industrial
     Tribunal II, U.P., Lucknow and Ors. (1983) 4 SCC 464
                                                                  B
     - referred to.
      1.4 The women workers were certainly employed for wages
in connection with the work of the Respondent Company. The
women workers were directly engaged by the Management in
connection with the work of the respondent company, which was
set up as a ready-made garments industry. The women workers       C
were paid wages on per-piece basis for the services rendered.
Merely because the women workers were permitted to do the
work off site, would not take away their status as employees of
the respondent company. [Para 6.9] [1112-F]
     1.5 The judgment passed by the High Court is set aside.      D
The order passed by the appellant No. 1 is restored. The
respondent company is directed to deposit the amount assessed
by appellant No. 1 towards Provident Fund dues of the women
workers within the stipulated period. [Para 8] [1113-G]
     C.E.S.C. Limited and Ors. v. Subhash Chandra Bose            E
     and Ors. (1992) 1 SCC 441 : [1991] 2 Suppl. SCR 267
     - held inapplicable.
                     Case Law Reference
     [1974] 1 SCR 747           relied on           Para 6.4      F
     (1983) 4 SCC 464           relied on           Para 6.5
     [1985] 3 Suppl. SCR 55     relied on           Para 6.6
     [1985] 3 Suppl. SCR 55     referred to         Para 6.6
     [2012] 1 SCR 363           referred to         Para 6.8      G
     [1998] 2 Suppl. SCR 482    referred to         Para 6.8
     [1991] 2 Suppl. SCR 267    held inapplicable   Para 7


                                                                  H
1104            SUPREME COURT REPORTS                         [2019] 9 S.C.R.


 A           CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5821
       of 2019
             From the Judgment and Order dated 27.04.2012 of the High Court
       of Judicature at Bombay, Bench at Aurangabad in Writ Petition
       No. 1615 of 1993
 B           R. R. Rajesh, Brajesh Kumar, Advs. for the Appellants.
             Anoop Kandari, Nishant Ramakantrao Katneshwarkar, Advs. for
       the Respondent.
             The Judgment of the Court was delivered by
 C           INDU MALHOTRA, J.
             Delay condoned.
             Leave granted.
             1. The present Civil Appeal has been filed to challenge the Order
 D     dated 27.04.2012 passed in W.P. No. 1615 of 1993 by the Bombay High
       Court, Aurangabad Bench.
             2. The background facts in which the present Civil Appeal has
       been filed are briefly stated as under:
             2.1. The Respondent Company is a subsidiary of the Marathwada
 E                 Development Corporation, which is an undertaking of the
                   Government of Maharashtra. It was covered under the
                   provisions of the Employees’ Provident Fund and
                   Miscellaneous Provisions Act, 1952 (hereinafter referred to
                   as “the EPF Act”) with effect from 01.01.1979.
 F           2.2. The main objective of the Respondent Company, as per its
                  Memorandum of Association, was to encourage, promote,
                  develop, set-up or cause to be set-up a readymade garments
                  industry in the Marathwada Region, with a view to provide
                  gainful employment to people possessing skills in stitching,
 G                tailoring, and allied activities, especially to women from the
                  economically weaker sections of the Society.
             2.3. The Respondent Company engaged women workers who
                  were provided with cut fabric, thread, buttons, etc. to be
                  made into garments at their own homes. The sewing
 H
   OFFICER IN CHARGE, SUB-REGIONAL PROVIDENT FUND      1105
OFFICE v. M/S GODAVARI GARMENTS LTD.[INDU MALHOTRA,J.]

         machines used by the women workers were owned by them,        A
         and not provided by the Respondent Company.
    2.4. On 12.03.1991, Appellant No. 1 – Officer In-Charge, Sub-
         Regional Provident Fund Office, issued a Show Cause
         Notice to the Respondent Company calling upon it to pay
         the Provident Fund contributions for the women workers.       B
         The Balance Sheet of the Respondent Company for the year
         1988 – 89, revealed large debits towards salary and wages
         for direct and indirect workers, but the Respondent
         Company made a false statement that it had only 41
         employees.
                                                                       C
    2.5. On 30.11.1992, Appellant No. 1 issued summons to the
         Respondent Company for personal hearing under Section
         7-A of the EPF Act.
    2.6. The representative of the Respondent Company appeared
         before Appellant No. 1, and contended that the women          D
         workers who were fabricating garments for the Respondent
         Company, were not their employees, and hence not covered
         by Section 2(f) of the EPF Act. Therefore, even though
         wages were paid to those women workers, the Respondent
         Company was not liable to pay Provident Fund contribution
         in respect of them.                                           E

    2.7. The Provident Fund Officer – Appellant No. 1 vide Order
         dated 19.04.1993 held that the women workers engaged for
         stitching garments were covered by the definition of
         “employee” under Section 2(f) of the EPF Act. An amount
         of Rs. 15,97,087/- was assessed towards Provident Fund        F
         dues of the Respondent Company for the period from
         November, 1979 to February, 1991. The Respondent
         Company was directed to pay the said amount within 7 days.
    2.8. The Respondent Company challenged the aforesaid Order
         by filing W.P. No. 1615 of 1993 before the Bombay High        G
         Court.
          The Bombay High Court, Aurangabad bench vide Final
         Judgment and Order dated 27.04.2012 allowed the Writ
         Petition filed by the Respondent Company, and set aside the
                                                                       H
1106                SUPREME COURT REPORTS                        [2019] 9 S.C.R.


 A                     Order dated 19.04.1993 passed by the Appellant No. 1. It
                       was held that the Respondent Company had no direct or
                       indirect control over the women workers. The conversion of
                       cloth into garment could be done by any person on behalf of
                       the women workers. Hence, the Respondent Company did
                       not exercise any supervisory control over the women
 B
                       workers.
                  2.9. Aggrieved by the aforesaid Judgment, the present Civil
                      Appeal has been filed by the Provident Fund Office.
             3. We have heard the learned Counsel for the parties, and
 C     perused the pleadings and written submissions filed by the parties.
             4. Mr. R.R. Rajesh, learned Counsel appearing on behalf of the
       Appellants, submitted that the women workers employed by the
       Respondent Company fall within the definition of “employee” under
       Section 2(f) of the EPF Act.
 D            Reliance was placed on this Court’s decision in M/s P.M. Patel
       & Sons and Ors. v. Union of India and Ors.1to contend that the
       women workers employed by the Respondent Company were covered
       by the definition of “employee” under Section 2(f) of the EPF Act. Hence,
       the Respondent Company is liable to pay Provident Fund contribution in
 E     respect of those women workers.
             5. Mr. Anoop Kandari, learned Counsel appearing on behalf of
       the Respondent Company, submitted that there was no
       employer-employee relationship between the Respondent Company and
       the women workers. The women workers were not employees under
 F     Section 2(f) of the EPF Act. They were independent contractors.
              It was further submitted that the sewing machines used by the
       women workers were owned by them, and not provided by the
       Respondent Company. The women workers worked from their homes,
       and not at the production centers of the Respondent Company. Hence,
       the work performed by them, could be done by their relatives, or any
 G
       other person on their behalf. Furthermore, the women workers were not
       bound to report to the production centers regularly, nor were they
       required to work at the production centers. The Respondent Company
       exercised no supervisory control over the women workers.
       1
           (1986) 1 SCC 32.
 H
   OFFICER IN CHARGE, SUB-REGIONAL PROVIDENT FUND      1107
OFFICE v. M/S GODAVARI GARMENTS LTD.[INDU MALHOTRA,J.]

      6. The short issue which arises for consideration is whether the       A
women workers employed by the Respondent Company are covered by
the definition of “employee” under Section 2(f) of the EPF Act or not.
      Section 2(f) of the EPF Act is set-out hereinbelow for ready
reference:
      “(f) “employee” means any person who is employed for wages             B
      in any kind of work, manual or otherwise, in or in
      connection with the work of an establishment, and who gets,
      his wages directly or indirectly from the employer, and
      includes any person,—
      (i) employed by or through a contractor in or in connection            C
      with the work of the establishment;
      (ii) engaged as an apprentice, not being an apprentice
      engaged under the Apprentices Act, 1961 (52 of 1961), or
      under the standing orders of the establishment;”
                                                                             D
                                                    (emphasis supplied)
     6.1. The definition of “employee” under Section 2(f) of the EPF
          Act is an inclusive definition, and is widely worded to include
          any person engaged either directly or indirectly in connection
          with the work of an establishment.
                                                                             E
     6.2. In the present case, the women workers employed by the
          Respondent Company were provided all the raw materials, such
          as the fabric, thread, buttons, etc. from the Respondent –
          Employer. With this material, the women workers were
          required to stitch the garments as per the specifications given
                                                                             F
          by the Respondent Company. The women workers could stitch
          the garments at their homes, and provide them to the
          Respondent Company. The Respondent Company had the
          absolute right to reject the finished product i.e. the garments,
          in case of any defects.
     6.3. The mere fact that the women workers stitched the                  G
         garments at home, would make no difference. It is the
         admitted position that the women workers were paid wages


                                                                             H
1108                SUPREME COURT REPORTS                         [2019] 9 S.C.R.


 A                  directly by the Respondent Company on a per-piece basis for
                    every garment stitched.
               6.4. The issue in the present case is squarely covered by the
                    decision of this Court in Silver Jubilee Tailoring House and
                    Ors. v. Chief Inspector of Shops and Establishments and
 B                  Ors.2 The appellants therein were engaged in the business of
                    producing garments. They employed workers who were
                    provided with the cloth, and were instructed by the appellants
                    how to stitch it. The workers were paid on piece-rate basis. If
                    a worker failed to stitch a garment as per the instructions, the
                    appellants rejected the work, and asked the worker to re-stitch
 C                  the garment. This Court held that such workers fell within the
                    definition of “person employed” under Section 2(14) of the
                    Andhra Pradesh (Telangana Area) Shops and Establishments
                    Act, 1956. It was held that:
                     “35. Quite apart from all these circumstances, as the
 D                   employer has the right to reject the end product if it does
                     not conform to the instruction of the employer and direct
                     the worker to restitch it, the element of control and
                     supervision as formulated in the decisions of this Court is
                     also present.”
 E                                                            (emphasis supplied)
               6.5. On the issue where payment is made by piece-rate to the
                    workers, would they be covered by the definition of “employee”,
                    this Court in Shining Tailors v. Industrial Tribunal II, U.P.,
                    Lucknow and Ors.,3 held that:
 F
                     “5. We have gone through the record and especially the
                     evidence recorded by the Tribunal. The Tribunal has
                     committed a glaring error apparent on record that
                     whenever payment is made by piece rate, there is no
                     relationship of master and the servant and that such
 G                   relationship can only be as between principal and
                     principal and therefore, the       respondents were
                     independent contractors. Frankly, we must say that the
       2
           (1974) 3 SCC 498.
       3
           (1983) 4 SCC 464.
 H
   OFFICER IN CHARGE, SUB-REGIONAL PROVIDENT FUND      1109
OFFICE v. M/S GODAVARI GARMENTS LTD.[INDU MALHOTRA,J.]

       Tribunal has not clearly grasped the meaning of what is         A
       the piece rate, If every piece rated workmen is an
       independent contractor, lakhs and lakhs of workmen in
       various industries where payment is correlated to
       production would be carved out of the expression
       ‘workmen’ as defined in the Industrial Disputes Act. In
                                                                       B
       the past the test to determine the relationship of employer
       and the workmen was the test of control and not the method
       of payment. Piece rate payment meaning thereby payment
       correlated to production is a well-recognised mode of
       payment to industrial workmen. In fact, wherever possible
       that method of payment has to be encouraged so that there       C
       is utmost sincerity, efficiency and single minded devotion
       to increase production which would be beneficial both to
       the employer, the workmen and the nation at large. But
       the test employed in the past was one of determining the
       degree of control that the employer wielded over the
                                                                       D
       workmen. However, in the identical situation in Silver
       Jubilee Tailoring House and Ors. v. Chief Inspector of
       Shops and Establishments and Anr. (1973) IILLJ 495 SC
       Methew, J. speaking for the Court observed that the
       control idea was more suited to the agricultural society
       prior to Industrial Revolution and during the last two de-      E
       cades the emphasis in the field is shifted from and no
       longer rests exclusively or strongly upon the question of
       control. It was further observed that a search for a
       formula in the nature of a single test will not serve the
       useful purpose, and all factors that have been referred to
                                                                       F
       in the cases on topics, should be considered to tell a
       contract of service. Approaching the matter from this
       angle, the Court observed that the employer’s right to
       reject the end product if it does not conform to the
       instructions of the employer speaks for the element of
       control and supervision. So also the right of removal of        G
       the workman or not to give the work has the element of
       control and supervision. If these aspects are considered
       decisive, they are amply satisfied in the facts of this case.


                                                                       H
1110                SUPREME COURT REPORTS                         [2019] 9 S.C.R.


 A                   The Tribunal ignored the well laid test in law and
                     completely misdirected itself by showing that piece rate
                     itself indicates a relationship of independent contractor
                     and error apparent on the record disclosing a total lack
                     of knowledge of the method of payment in various
                     occupations in different industries. The right of rejection
 B
                     coupled with the right to refuse work would certainly
                     establish master servant relationship and both these tests
                     are amply satisfied in the facts of this case. Viewed from
                     this angle, the respondents were the workmen of the
                     employer and the preliminary objection therefore, raised
 C                   on behalf of the appellant-employer was untenable and
                     ought to have been overruled and we hereby overrule it.”
                                                              (emphasis supplied)
                6.6. In M/s P.M. Patel & Sons and Ors. v. Union of India and
                     Ors.,4 the appellants therein were engaged in the manufacture
 D                   and sale of bidis. The appellants engaged contractors, and the
                     contractors engaged workers who rolled the bidis at their own
                     homes after obtaining the raw materials either directly from
                     the appellants, or through the contractors. The appellants
                     contended that those workers were not covered by the
 E                   definition of “employee” under Section 2(f) of the EPF Act.
                     This Court rejected the contentions raised by the appellants
                     therein, and held that:
                     “8. … Clause (f) of Section 2 of that Act defines an
                     “employee” to mean “any person who is employed for
 F                   wages in any kind of work, manual or otherwise, in or in
                     connection with the work of an establishment, and who
                     gets his wages directly or indirectly from the employer,
                     and includes any person employed by or through a
                     contractor in or in connection with the work of the
                     establishment.” It will be noticed that the terms of the
 G                   definition are wide. They include not only persons
                     employed directly by the employer but also persons
                     employed through a contractor. Moreover, they include
                     not only persons employed in the factory but also

       4
           (1986) 1 SCC 32.
 H
   OFFICER IN CHARGE, SUB-REGIONAL PROVIDENT FUND      1111
OFFICE v. M/S GODAVARI GARMENTS LTD.[INDU MALHOTRA,J.]

       persons employed in connection with the work of the              A
       factory. It seems to us that a home worker, by virtue of the
       fact that he rolls beedis, is involved in an activity
       connected with the work of the factory. We are unable to
       accept the narrow construction sought by the petitioners
       that the words “in connection with” in the definition of
                                                                        B
       “employee” must be confined to work performed in the
       factory itself as a part of the total process of the
       manufacture.
       ...
       10. In the context of the conditions and the circumstances       C
       set out earlier in which the home workers of a single
       manufacturer go about their work, including the
       receiving of raw material, rolling the beedis at home and
       delivering them to the manufacturer subject to the right
       of rejection there is sufficient evidence of the requisite
       degree of control and supervision for establishing the           D
       relationship of master and servant between the
       manufacturer and the home worker. It must be remembered
       that the work of rolling beedis is not of a sophisticated
       nature, requiring control and supervision at the time when
       the work is done. It is a simple operation which, as             E
       practice has shown, has been performed satisfactorily by
       thousands of illiterate workers. It is a task which can be
       performed by young and old, men and women, with equal
       facility and it does not require a high order of skill. In the
       circumstances, the right of rejection can constitute in
       itself an effective degree of supervision and control. We        F
       may point out that there is evidence to show that the
       rejection takes place in the presence of the home worker.
       That factor, however, plays a merely supportive role in
       determining the existence of the relationship of the
       master and servant. The petitioners point out that there is      G
       no element of personal service in beedi rolling and that it
       is open to a home worker to get the work done by one or
       the other member of his family at home. The element of


                                                                        H
1112             SUPREME COURT REPORTS                           [2019] 9 S.C.R.


 A                personal service, it seems to us, is of little significance
                  when the test of control and supervision lies in the right
                  of rejection.”
                                                             (emphasis supplied)
            6.7. The aforesaid judgments make it abundantly clear that the
 B               women workers employed by the Respondent Company are
                 covered by the definition of “employee” under Section 2(f) of
                 the EPF Act.
            6.8. The EPF Act is a beneficial social welfare legislation which
                 was enacted by the Legislature for the benefit of the
 C               workmen.5 This Court in The Daily Partap v. The Regional
                 Provident Fund Commissioner, Punjab, Haryana, Himachal
                 Pradesh and Union Territory, Chandigarh,6 held that:
                  “9. … It has to be kept in view that the Act in question, is
                  a beneficial social welfare legislation meant for the
 D                protection of weaker sections of society, namely,
                  workmen who had to eke out their livelihood from the
                  meagre wages they receive after toiling hard for the
                  same.”
             Hence, the provisions under the EPF Act have to be interpreted
 E     in a manner which is beneficial to the workmen.
            6.9. In the present case, the women workers were certainly
                 employed for wages in connection with the work of the
                 Respondent Company. The definition of “employee” under
                 Section 2(f) is an inclusive definition, and includes workers
 F               who are engaged either directly or indirectly in connection
                 with the work of the establishment, and are paid wages.
              In the present case, the women workers were directly engaged
       by the Management in connection with the work of the Respondent
       Company, which was set up as a ready-made garments industry in
       Marathwada. The women workers were paid wages on per-piece basis
 G
       for the services rendered. Merely because the women workers were
       permitted to do the work off site, would not take away their status as
       employees of the Respondent Company.
       5
         Regional Provident Fund Commissioner v. The Hooghly Mills Company
       Ltd. and Ors. , 2012 (1) SCALE 422.
       6
 H       (1998) 8 SCC 90.
   OFFICER IN CHARGE, SUB-REGIONAL PROVIDENT FUND      1113
OFFICE v. M/S GODAVARI GARMENTS LTD.[INDU MALHOTRA,J.]

      7. The Respondent Company placed reliance on this Court’s             A
decision in C.E.S.C. Limited and Ors. v. Subhash Chandra Bose and
Ors.,7wherein it washeld that:
          “14. … In the textual sense ‘supervision’ of the principal
          employer or his agent is on ‘work’ at the places envisaged
          and the word ‘work’ can neither he construed so broadly to        B
          be the final act of acceptance or rejection of work, nor so
          narrowly so as to be supervision at all limes and at each and
          every step of the work. A harmonious construction alone
          would help carry out the purpose of the Act, which would
          mean moderating the two extremes. When the employee is put
          to work under the eye and gaze of the principal employer, or      C
          his agent, where he can be watched secretly, accidentally, or
          occasionally, while the work is in progress, so as to
          scrutinise the quality thereof and to detect faults therein, as
          also put to timely remedial measures by directions given,
          finally leading to the satisfactory completion and acceptance     D
          of the work, that would in our view be supervision for the
          purposes of Section 2(9) of the Act.”
       The decision in C.E.S.C. Limited (supra) however, is not
applicable to the facts of the present case. In that case, this Court
interpreted the meaning of the term “supervision” as used in the            E
definition of “employee” Section 2(9) of the Employees’ State
Insurance Act, 1948. However, the term “supervision” is nowhere used
in the definition of “employee” under Section 2(f) of the EPF Act. The
decision in P.M. Patel(supra) could not be used to interpret the word
“supervision”       under the Employees’ State Insurance Act, 1948
because the said word has not been used in Section 2(f) of the EPF Act.     F

      8. In view of the aforesaid discussion, the judgment passed by the
Bombay High Court vide the Impugned Order dated 27.04.2012, being
contrary to settled law, is set aside.
       The Order dated 19.04.1993 passed by the Appellant No. 1 is          G
restored. The Respondent Company is directed to deposit the amount
assessed by Appellant No. 1 towards Provident Fund dues of the women
workers within 1 month from the date of this Judgment.

7
    (1992) 1 SCC 441.
                                                                            H
1114                SUPREME COURT REPORTS                  [2019] 9 S.C.R.


 A           The Civil Appeal is allowed in the aforesaid terms. All pending
       Applications, if any, are accordingly disposed of.
               Ordered accordingly.


 B     Nidhi Jain                                               Appeal allowed.




 C




 D




 E




 F




 G




 H


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